Contract negotiations can take a lot of time. What is the reason? Most of the legal teams are fixated on their terms and refuse to budge through the negotiations. That reason can cause the draft to go back and forth and still no result in anything. Successful people like Thomas Jakobek focus on the fact that it is more strategic to keep the expectations in mind and, over the negotiations, turn a weak contract into a competitive one. If a lawyer will offer a very unfair contract at first and try to back it, over the negotiations, he will be able to get the opposite party to settle for a less fair contract.
Check out the tips given below to apply during negotiations to ensure the best outcome.
1. FOCUS ON THE END GOAL –Negotiating parties should keep their end goal in mind. They should consider the least they can make peace with and what the opposite party can offer. Once the end goal is decided, it becomes easier to weigh the pros and cons of the contract.
2. BEING PREPARED TO DECLINE THE OFFER –Contract negotiations can be intimidating. To prevent agreeing to an unfair contract, it is better to be prepared to turn down the deal. Keep in mind that it is better to have no deal than one where you are at a loss.
3. DIG DEEPER INTO THE DETAILS – While drafting the contract, lawyers can be really clever with words and create loopholes in the contract. Later they can use it to manipulate the deal. Paying attention to the details of the contract will prevent that from happening.
4. BE REALISTIC – Contracts at corporate levels are not to be mocked. These are serious, and there are a lot of things to consider. Larry Page suggests being realistic as it saves time for both parties and thus, prevents frustration. If the deal is fair and realistic, it will be signed quickly, and operation can begin.
5. REALIZE THAT EVERYTHING IS NEGOTIABLE – Leaders like Thomas Jakobek understands that when the contract is on the table, each and every point is negotiable. One party may sometimes stay fixated on some terms, but if those terms do not suit the other, they should try to convince them to waive the terms.
6. PRIORITIZE – There are two parties involved in a contract, and both want to come out on top. But that is not possible. Therefore, it is advisable that they should state their priorities clearly and figure out a way to resolve in a win-win situation.
7. RESEARCH BEFOREHAND – Before entering into a contract, detailed research is necessary. If both parties come with appropriate data and research to back up their claims, reaching an agreement becomes much simpler.
Contract negotiations can be very complex at the time, but if both parties have their priorities figured out and ready to be logical, these negotiations can go down smoothly. These negotiations will not always yield results, but when they do, both parties will be satisfied.